DJT Stocks - Trump Media: I have an ignorant question if anyone knows the factual answer. Trump owns over 55% of the company and they say it's worth many many billions. I know he's not...

Bidentrump

I have an ignorant question if anyone knows the factual answer.

Trump owns over 55% of the company and they say it's worth many many billions. I know he's not allowed to sell until 6 mos after it went public.

My question, once he's allowed to sell....
if he sold just one or 2 billions worth of stocks, where would the money come from? The company has had loses last years and only earned a few million in revenue. From what I've read..

Where will they get the money to give him if he sold 1 or 2 billions worth?

Just trying to understand this system. Thanks for sharing your knowledge, in advance.

Strycker Loc: The middle of somewhere else.

Bidentrump wrote:

I have an ignorant question if anyone knows the fa... (show quote)

He doesn't sell to the company. He sells his stock to other stock buyers on the stock exchange wanting to invest in his company. Just to note, if he sold one or two billion worth of the stock, the stock's value would likely crash and break the company.

JFlorio Loc: Seminole Florida

Strycker wrote:

He doesn't sell to the company. He sells his stock to other stock buyers on the stock exchange wanting to invest in his company. Just to note, if he sold one or two billion worth of the stock, the stock's value would likely crash and break the company.

Exactly

Kevyn

Bidentrump wrote:

I have an ignorant question if anyone knows the fa... (show quote)

Suckers who bought useless stock

XXX Loc: Somewhere north of the Mason-Dixon

Bidentrump wrote:

I have an ignorant question if anyone knows the fa... (show quote)

Whoever buys stock pays for what they buy. Where the money comes from is the buyers problem. 🙄

Milosia2 Loc: Cleveland Ohio

Bidentrump wrote:

I have an ignorant question if anyone knows the fa... (show quote)

How is a company with $4.5 million per year in business worth $2Billion ???

Bidentrump

Strycker wrote:

He doesn't sell to the company. He sells his stock to other stock buyers on the stock exchange wanting to invest in his company. Just to note, if he sold one or two billion worth of the stock, the stock's value would likely crash and break the company.

That makes sense that it would break the company.

So, example, when he sells it's worth $50/share, before he can sell some shares worth 1B, there must have been enough investors that invested for him to be able to do it? Is that correct? Meaning the investors have to buy those shares first, before he can sell? Did i understand it correctly?

I thought the value of the company depends on the revenue of the company?

Sorry, Im just trying to understand.... if you don't mind. Thx

Bidentrump

Milosia2 wrote:

How is a company with $4.5 million per year in business worth $2Billion ???

That's why, I don't understand.

They keep saying Trump has billions of dollars from those stocks. If the company hasn't earned much, then how does that work?

It's just paper money? Is that what it is?

Bidentrump

Strycker wrote:

He doesn't sell to the company. He sells his stock to other stock buyers on the stock exchange wanting to invest in his company. Just to note, if he sold one or two billion worth of the stock, the stock's value would likely crash and break the company.

Or basically, if not enough people invested, there won't be much money to give him? Is that right?

Sounds kinda like a ponzi scheme. Lol

JFlorio Loc: Seminole Florida

Milosia2 wrote:

How is a company with $4.5 million per year in business worth $2Billion ???

With out looking it up because I stay away from hyped investments that are almost aways overvalued. This would probably be considered a growth company. At least a 20:1 EPS ratio. Can grow quickly or dive quickly.

Strycker Loc: The middle of somewhere else.

Bidentrump wrote:

Or basically, if not enough people invested, there won't be much money to give him? Is that right?

Sounds kinda like a ponzi scheme. Lol

Perceived future potential. Amazon went for many years with no earnings /share but the price for the stock was still very high. Stock value is not just based on earnings. Many other factors go into the market value of any asset whether it's stock, bonds, art, real estate, etc. Some of the factors are earnings, social interest, potential future return, potential success of the underlying company, and investor sentiment. They are all gambling. The higher the the potential return the higher people are willing to pay at a shot for those potential returns. The lottery is a good example of high risk with very bad odds but a huge potential return.

In the case of DJT the market is gambling on the ability of Trump to develop a successful conservative social media company. Much the same way FOX built a successful conservative leaning news network. They are all gambling on the idea that there is a market for the product and Trump has the ability to tap into it. If the idea fails, yes the stock price thus money disappears.

LogicallyRight Loc: Chicago

Kevyn wrote:

Suckers who bought useless stock

Still trolling I see.

Troll alert

LogicallyRight Loc: Chicago

Milosia2 wrote:

How is a company with $4.5 million per year in business worth $2Billion ???

Potential.

America 1 Loc: South Miami

Kevyn wrote:

Suckers who bought useless stock

Trump Media & Technology Group Corp (DJT)
49.93 +3.24 (+6.94%) 04/30/24 [NASDAQ]
Barchart Technical Opinion
STRONG BUY
The Barchart Technical Opinion rating is a 72% Buy with an Average short-term outlook on maintaining the current direction.
https://www.barchart.com/stocks/quotes/DJT/overview

padremike Loc: Phenix City, Al

Kevyn wrote:

Suckers who bought useless stock

Those who bought stock in Biden lost a lot more Nimrod. They will regain it and much more Nov 5th. A rising tide lifts all boats even those who are enemies.